Unless you have been busy and had no time to watch the news on TV, you will have most likely heard about the competitive interest rates available in Western Australia.
The news is that interest rates are low and they are likely to fall even lower due to our uncertain economy. This competitiveness has led to easy finance being available.
There has never been a better time to organise car finance in Perth, and in certain cases, it is even possible to get a 1% car finance deal.
With the car loans market being so competitive, it might just be time to go shopping for a new vehicle. So, with this in mind, I will break down the various types of car financing available to help you decide which is best for you.
What are the various options for car finance in Perth?
There are many types of loans available, and a good car finance broker will be able to explain the details in depth. These are some of the better options:
This is similar to a house mortgage in that you only take full ownership of the vehicle once all payments have been completed.
The main difference compared with a regular secured loan which uses the vehicle as security, is that a chattel mortgage has significant tax benefits if the vehicle is mostly used for business reasons.
It is just like any loan, in that you agree a repayment period and monthly (or weekly) payments are due.
This is the most common type of car loan that you will see. It basically means that the car itself will be acting as collateral.
It is similar to you loaning money from a bank to buy a home, in that, the bank will be confident they can sell your vehicle and recoup their money in the event that you fail to pay the loan in full. That is the “secured” part.
Secured loan rates are often lower than unsecured rates as the lender’s risk is lower.
Novated Car Lease
This is a lease agreement which involves your employer. You will not own the car at the end, but you will have reasonable monthly payments, and it is a way for your employer to guarantee your lease and to pay for your car as a part of your salary package.
Once again there are tax advantages to both you and your employer if you choose this method of financing. There is also no need to pay GST, as you are not actually buying your car, which will save a further 10%.
Using a Broker
This is a practical option as many car wholesalers will have a broker on-site who will be able to advise you of the best deals available and how to organise your car financing quickly.
You simply answer questions about the loan requirement, if it is secured or unsecured, your personal circumstances with regard to income and outgoings, and then leave it up to them to compare the available car finance in Perth.
Essentially they make the process easy as they are aware of the ins and outs of loans and how to find a good deal for your particular situation.
You should familiarise yourself with the various options for easy finance when buying a car in Perth.
A car finance broker is a good option as they will simplify the process, and often get you a deal which will make a considerable saving over the period of your loan.
Check out Westside Auto Wholesale for easy finance deals.